Fewer Japanese Paid Over 10 Million Yen Income Tax In 2003

by Mary Swire, Tax-News.com, Hong Kong

19 May 2004

Data released by Japan’s tax collection agency for 2003 has revealed that the number of individuals who paid more than 10 million yen ($87,748) in income tax has declined for the third consecutive year.

According to the annual report of the National Tax Administration Agency, made public on Monday, some 74,000 Japanese taxpayers paid more than 10 million yen last year, a drop of around 1,400 on 2002 figures and the third lowest in two decades.

The total number of taxpayers who were required to file income tax declarations however, increased in 2003 by 65,000 to 6.93 million. Japanese taxpayers are only required to file this declaration, or kakutei shinkoku, if they have earned more than 20 million ($175,492) in annual salaries, or 200,000 yen in additional income from second jobs.

Meanwhile, the figures also revealed that the top taxpayer last year was Hitori Saito, the chief of the health food retailer Saito Shoten, who paid 1.14 billion ($10 million) in income tax.

Further statistics showed that fifty of the top one hundred Japanese taxpayers earned most of their income from business operations, salaries and stock dividends, whilst twenty-nine earned income from the sale of stocks, with six profiting from the recently legalized selling of unlisted stock.

Recommended